Tech Mahindra plans to raise funds via share sale

The board of directors of the company at its meeting on Monday approved the issue of 1.36 crore shares by way of private placement or Qualified Institutional Placement basis, Tech Mahindra said in a filing to the Bombay Stock Exchange.

The company, however, did not disclose how much it is planning to raise through this share sale and at what price the shares would be alloted.

Calculated on the basis of Monday's closing price, Tech Mahindra, could garner as much as Rs 1,006.60 crore (Rs 10.06 billion) through this share sale.

The said issuance of shares would be subject to shareholders approval, Tech Mahindra added.

Earlier in April, Tech Mahindra won the race to acquire majority stake in Satyam Computer. The acquisition is expected to bring Tech Mahindra in the league of top five IT firms.

Tech Mahindra has already made the payment of Rs 2,990 crore (Rs 29.9 billion) for 31 per cent stake in Satyam and has made an open offer for acquiring additional 20 per cent stake, which opened on June 12 and will close on July 1.